Your credit score is extremely important because it is a measure of trust for lenders compared to other consumers. The higher your score, the more trust you will have from lenders and institutions to pay the money back. A well looked-after credit score can improve financial well-being and can make getting a mortgage, car loan, or starting a business much easier!
Once a credit score is damaged, it can take years to recover.
The table below shows some of the potential benefits of high vs. low credit scores.
|
Higher Score |
Lower Score |
|
Higher credit limit |
Lower credit limit |
|
Higher chance of approval |
Lower chance of approval |
|
Lower interest rates |
Higher interest rates |
|
More borrowing room |
Less borrowing room |